Which of the following statement is not true regard to auditor rsquo s attendance at stock taking ........

Auditing Audit and auditor's report

Which of the following statement is not true regard to auditor’s attendance at stock taking?

Auditor should attend physical stock taking only if inventory is material

Auditor may not attend physical verification of stock by management, if he does not find it appropriate to rely on it

If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it

The primary objective of an auditor’s observation of an entity’s observation of an entity’s stock take is to obtain direct knowledge that the stock and has been property counted

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Explanation:

Auditor's attendance is dependent on the materiality of the stock(inventory) and the auditor's evaluation of the internal control procees.

Physical verification of inventories is the responsibility of the management of the entity.

Where the inventories are material and the auditor is placing reliance upon the physical count by the management, it may be appropriate for the auditor to attend the stock-taking.